Shares of Troika Media Group (NASDAQ:TRKA) stock opened in the red after the CEO of Genius Group (NYSEMKT:GNS), Roger Hamilton, tweeted that he was seeking an acquisition of the company.
Also Genius Group $GNS has sent to Troika Media a non-binding offer to acquire $TRKA together with a proposal on capital restructure. As agreed with @Jefferies terms are confidential. Offer approved by $GNS Board. Proceeding subject to $TRKA go-ahead (or not)
— Roger James Hamilton (@rogerhamilton) March 29, 2023
The full details of the non-binding offer were not disclosed due to a confidential agreement with the investment bank Jefferies Group. A non-binding offer means that the offer can be withdrawn without facing any legal consequences. Genius’ board has already approved the proposal, so all eyes are now on Troika to see if they approve the deal. There has been no word from Troika on how they feel about the acquisition.
“I believe there are great synergies between $TRKA expertise in reaching & engaging millions effectively, and $GNS education model to build LTV,” added Hamilton.
TRKA Stock: Genius Discloses Non-Binding Offer
Hamilton also stated that Genius has had multiple discussions with companies about an acquisition. For this year, Genius’ strategy is to drive growth and the fight against naked short selling through mergers and acquisitions. Genius kicked off its battle against naked shorts by forming its Illegal Task Trading Force (ITTF). The ITTF’s first course of action was to investigate the alleged market manipulation of GNS stock.
So, would an acquisition of Troika make sense for Genius? Genius operates as a global education technology company, while Troika is a marketing services company that also owns Converge Direct. Converge is a marketing agency focusing on digital media buying and data analytics. Hamilton seeks to use the marketing prowess of Troika to expand Genius’ educational services further. Based on the perspective of TRKA shareholders, it is hard to decipher whether the deal will be beneficial without first seeing the not yet disclosed acquisition price. Hamilton also mentioned that Genius had sent Troika a capital restructuring plan.
Meanwhile, Genius announced this morning that its stock had been approved to dual list on Upstream. Hamilton stated that shares owned through Upstream would be stored in the blockchain, which means that they can’t be shorted or naked shorted.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.